Identify which of the following statements is true.

Group of answer choices

All of the above are false.

A corporation recognizes gain when distributing money as a dividend to its shareholders.

If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.

The shareholder's basis in property received in a nonliquidating distribution is the property's FMV reduced by liabilities assumed by the shareholder.